I finally found the perfect car (truck) that I want but its located 800 Miles away, it's a screaming deal too btw. I am in MD and the truck is in WI. The MD excise tax is 6%, I called the DMV and asked if I buy a car out of state how do taxes work. She explained to me that I will pay 6% of the value of the car, and that this is a "road use and bridge tax" which happens to be the same rate as the sales tax. I asked if the out of state dealership charges me tax as well do I still pay the MD excise tax, she said "yes". She was rude too, but that is expected. Now I talked to a dealer in VA, they said you just pay the tax for your state in their dealership for where you live. Now my question, since I am not a resident of WI will I be required to pay WI tax on the sale of the car and when I come home to MD to title it? Is there any laws to prevent this kind of "double jeopardy"? The state tax rate in WI is 5%. It's still a good deal even if i get dinged twice, but as a FW'er the best deal is of the essence. This is for a new car btw, now used. Any info or insight would be great.

Generally you pay tax on the car based on where you're going to register it.

I don't know if it varies from state to state but when I've bought a new car in TX but registered it in LA, the dealer charged me the LA sales tax rate based on my home address.

mttatkns

Thrifty Member

posted: Apr. 24, 2009 @ 1:35p

That's a question for the WI Department of Revenue. Will you travel to WI to pickup the car or will you have it delivered to MD? In the former case you should have to pay WI sales tax and in the latter case you should not.

craftsmd

Senior Member

posted: Apr. 24, 2009 @ 1:41p

You shouldn't get "dinged twice". If you get charged state tax in the state where you purchase, the state you title/register in should credit you that amount and you'll be liable for the difference if you state tax is higher. Owing excise tax should be totally different issue from sales tax.

That said, I've always been able to convince an out-of-state dealer to not charge me sales tax and just hand me over the Manufacturer Certificate of Origin (MSO) on new vehicles or the signed over title for used vehicles...still have to pay their BS "title paperwork" fees, just don't have them do any of the title paperwork/filing. (I'd definitely push hard to do that way before I'd pay the tax and then have to deal with two states trying to unscrew themselves on getting the tax right at registration.)

tarbelly

Member

posted: Apr. 24, 2009 @ 1:49p

mttatkns said: That's a question for the WI Department of Revenue. Will you travel to WI to pickup the car or will you have it delivered to MD? In the former case you should have to pay WI sales tax and in the latter case you should not.

I will be traveling to WI to pick it up but I don't see how that would make a difference.

BTW, I am waiting for a callback from their finance dept to see what they say.

tazzy531

Senior Member - 4K

posted: Apr. 24, 2009 @ 1:52p

I purchased a car in CT and registered in NY.

Because I am registering in NY, I only paid NY sales tax. The dealer in CT collected this and will remit this to NY State.

tadr

Senior Member

posted: Apr. 24, 2009 @ 2:12p

I lived in PA and purchased a car in NY. I definitely did NOT pay double tax. I just had to pay the excise tax when I registered in PA. The dealer in NY didn't charge tax.

dcwilbur

Ancient Member

posted: Apr. 24, 2009 @ 2:12p

If you are buying the vehicle from a dealership, their title clerk should be able to do all the paperwork for you, and you will only pay the MD tax. If you buy it from an individual, you won't pay tax at all at the time of purchase (since you won't title or register it in WI), and you can pay the 6% when you title it in MD. This happens all the time.

marketingmike

Cranky Member

posted: Apr. 24, 2009 @ 2:17p

What you're looking for is something called a "drive off tag" or whatever similar term is used in Wisconsin.

This permits you to legally drive the car for some number of days before you register it in your state, whereupon you'll pay whatever tax your state charges.

nycll

Geeky member

posted: Apr. 24, 2009 @ 2:21p

From a dealer you do have a choice: pay them a process fee and they will take care of the registration for you--you pay the MD tax; or just pay them the car price without tax and you will pay the MD tax when you register at MD DMV.

The rude DMV lady is a little bit beyond unhelpful.

shakyhands

Senior Member

posted: Apr. 24, 2009 @ 2:24p

I have done it a twice in the last few years.

You get a temporary tag from the other state(If you are dealing with a dealership, they will help you out with that). All you pay at that time is the agreed price plus the cost of the temp tag. Make sure you get the bill of sale and the title if they have one in hand.

Drive back to MD. When you go to the DMV, they will ask you for the paperwork and then you pay all the applicable tag, title, registration fees's and sales tax.

shakyhands

Senior Member

posted: Apr. 24, 2009 @ 2:30p

nycll said: From a dealer you do have a choice: pay them a process fee and they will take care of the registration for you--you pay the MD tax; or just pay them the car price without tax and you will pay the MD tax when you register at MD DMV.

The rude DMV lady is a little bit beyond unhelpful.

I think this usually applies where the buyer and sellers are from adjoining or nearby states(like NJ and PA or NY and CT). I dealt with a dealer from OK and he had no way of registering my car in PA. I had to do it myself. However, when I bought a car in NY, the dealer offered to do it for me(I refused).. I guess i like being treated like garbage at the DMV...

xwing249

Member

posted: Apr. 24, 2009 @ 2:49p

This does vary from state to state. I have bought a car in FL and had it registered in VA. I only paid VA taxes. That same dealer has told me they cannot do this now that I live in MD but I am still pursuing the details.

Xnarg

Senior Member - 5K

posted: Apr. 24, 2009 @ 4:02p

I can't wait until all businesses are taken over and forced to be as "efficient and pleasant" as the DMV.xwing249 said: This does vary from state to state...That's a very valid point and worth repeating.

jcole21

Senior Member

posted: Apr. 24, 2009 @ 4:07p

I bought a car in Wisconsin (Waukesha) and live in Iowa. I paid tax in Iowa, and ~$35 for a temporary 30 day tag issued from Wisconsin. I think they mailed me paperwork once the check cleared and everything for registration, but I may have roughed it to them and they sent to my county - that piece I don't recall for sure.

I live in PA and bought a car in OH. I paid like $50 for a temporary Ohio tag, but no sales tax there. When I registered in PA I paid the tax at that time. It was very easy, especially using the local notary who charged a few bucks on top of DMV fees but it was well worth it not to deal with the DMV

jcole21

Senior Member

posted: Apr. 24, 2009 @ 4:28p

Not that this applies to you, but just saw this on a car sale I was looking at online (may help someone who searches):The State of Illinois has an agreement with the following states to collect a percentage of their state taxes. (Arizona, California, Florida, Hawaii, Indiana, Massachusetts, Michigan, South Carolina and Vermont) The collected percentage is then forwarded to the state in which you are registering the vehicle. It is a ONE time fee & you will receive Documentation from us that you paid this tax at time of purchase.

jhburgess

Senior Member

posted: Apr. 24, 2009 @ 4:37p

tarbelly said: mttatkns said: That's a question for the WI Department of Revenue. Will you travel to WI to pickup the car or will you have it delivered to MD? In the former case you should have to pay WI sales tax and in the latter case you should not.

I will be traveling to WI to pick it up but I don't see how that would make a difference.

BTW, I am waiting for a callback from their finance dept to see what they say.MD does not impose a sales or use tax on autos, so they don't give credit for taxes paid to another state. MD imposes a special 6% registration tax on autos, which you will have to pay regardless of where the vehicle is purchased.Fortunately for you, WI exempts autos being registered in another state from the WI sales tax. Per WI sales tax FAQ:F. Sales to NonresidentsSales, leases, and rentals of motor vehicles or truckbodies (truck bodies include semitrailers) to personswho are not residents of Wisconsin, if use in Wisconsinis limited to removing the motor vehicle ortruck body from Wisconsin, are exempt from Wisconsinsales or use tax.

And, yes, both states can impose their taxes without any credit for tax paid another state.

It makes a difference if you pick up the auto in WI. If the seller ships the vehicle out-of-state, the WI tax would not apply. If you pick up the auto in WI, the WI tax applies, except as set out in "F" above.

chessycatlane

Addicted Member

posted: Apr. 24, 2009 @ 6:41p

i live in ct and have bought cars in new jersey, mass and new york. Each time the dealer gave a temporary plate and when i registered it in ct, i paid the taxes. I only paid taxes in ct.

oh, and i picked up the car in those states. i would not buy a car without looking at it first.

robby69

Senior Member - 7K

posted: Apr. 25, 2009 @ 10:32a

In Illinois, I bought a car in another town 15-miles from my home. I got charged IL sales tax at the dealership, and I received a tax bill from my home city for an extra 1% a month later. City where I bought it had tax rate of 6.5%, my city was 7.5%.

Stupid Illinois even charges tax on the entire cap cost of the car when you are leasing, rather than just a monthly tax on the cap cost amortized over the life of the lease like every other state in the union.

samm

Senior Member

posted: Apr. 25, 2009 @ 2:41p

I purchased a car in MA from a private party. I brought my FL tag from my old vehicle. Paid for the car, took the bill of sale to my local registars office in FL, paid for tax, title and tag transfer. I was told I had 15 days after purchase in MA to use the plate. When I first called MA the fellow tried to tell me I had to pay tax in MA and FL which I knew was complete bull. Finally got a supervisor who gave a reasonable answer. Good luck

tarbelly

Member

posted: Apr. 25, 2009 @ 6:11p

jhburgess said: tarbelly said: mttatkns said: That's a question for the WI Department of Revenue. Will you travel to WI to pickup the car or will you have it delivered to MD? In the former case you should have to pay WI sales tax and in the latter case you should not.

I will be traveling to WI to pick it up but I don't see how that would make a difference.

BTW, I am waiting for a callback from their finance dept to see what they say.MD does not impose a sales or use tax on autos, so they don't give credit for taxes paid to another state. MD imposes a special 6% registration tax on autos, which you will have to pay regardless of where the vehicle is purchased.Fortunately for you, WI exempts autos being registered in another state from the WI sales tax. Per WI sales tax FAQ:F. Sales to NonresidentsSales, leases, and rentals of motor vehicles or truckbodies (truck bodies include semitrailers) to personswho are not residents of Wisconsin, if use in Wisconsinis limited to removing the motor vehicle ortruck body from Wisconsin, are exempt from Wisconsinsales or use tax.

And, yes, both states can impose their taxes without any credit for tax paid another state.

It makes a difference if you pick up the auto in WI. If the seller ships the vehicle out-of-state, the WI tax would not apply. If you pick up the auto in WI, the WI tax applies, except as set out in "F" above.

Excellent info, many thanks. I searched the WI site ad nauseum for that answer, but I also got a response from the dealership's finance department stating the same. Flying out and driving back Monday.

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